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Financing systems

Synonyms:

Providing economic resourcesFinancing economic development

Description:

Managing the availability and distribution of financial resources to promote economic development.

Context:

Financing systems are as old as commerce. The financing system is required by any commercial enterprise which chooses to operate beyond its internal capacity to generate funds or credit. The more recent context involves supra-national political agencies and supra-national financial institutions in the process of promoting economic development on a global scale.

Implementation:

In this more recent context financial resources from both governmental and private sources are organized by the regulating agency or institution for delivery to requesting organizations whose projects or proposals satisfy the mandates and the criteria of these regulating bodies. In practise, the financial resources are delivered to users who would not qualify for access to other commercial or governmental financing systems.

Claim:

The cost of access to financial support depends upon its availability and the price others pay for the use of financial resources. The competition for both governmental and private financial resources may make this cost of access prohibitive to organizations promoting projects or proposals under conditions less favourable than those confronting their competitors. The strategy of financing systems aimed at economic development under these more severe conditions promotes broader development activity.

Counter Claim:

1. Under the aegis of political bodies, supra-national, financing systems tend to distribute financial resources with some degree of political bias. This tendency may lead to some degradation in the process of economic development.

2. Under the aegis of commercial corporate bodies, if transnational financing systems tend to distribute financial resources with some degree of economic bias. This tendency may lead to some degradation in the process of economic development of territories lacking the economic potential for selection.

About the Encyclopedia

The Encyclopedia of World Problems and Human Potential is a collaboration between UIA and Mankind 2000, started in 1972. It is the result of an ambitious effort to collect and present information on the problems with which humanity is confronted, as well as the challenges such problems pose to concept formation, values and development strategies. Problems included are those identified in international periodicals but especially in the documents of some 60,000 international non-profit organizations, profiled in the Yearbook of International Organizations.

The Encyclopedia includes problems which such groups choose to perceive and act upon, whether or not their existence is denied by others claiming greater expertise. Indeed such claims and counter-claims figure in many of the problem descriptions in order to reflect the often paralyzing dynamics of international debate. In the light of the interdependence demonstrated among world problems in every sector, emphasis is placed on the need for approaches which are sufficiently complex to encompass the factions, conflicts and rival worldviews that undermine collective initiative towards a promising future.

Non-profit, apolitical, independent, and non-governmental in nature, the UIA has been a pioneer in the research, monitoring and provision of information on international organizations, international associations and their global challenges since 1907.